‘More Could Be Done’ With Apple’s Capital: David Einhorn

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David Einhorn has voiced his opinion concerning Apple Inc. (NASDAQ:AAPL)’s capital management, and although it’s not as harsh as Carl Icahn’s, he’s not completely satisfied.

Einhorn Takes A Bite Out Of Apple

David Einhorn tried to get his own bite of Apple earlier this year when he filed a lawsuit against the Cupertino company over a proposal that would restrict the company’s ability to issue preferred stock shares. This suit may have been the catalyst that brought on one of the biggest share buybacks in history. However, the buyback is not big enough to satisfy everyone on the street.

Carl Icahn Wants A Taste Of Sweet Cider

Einhorn’s battle to force Apple to release some of its value to shareholders is the preface to a more recent and more public display of investor fit throwing waged by Carl Icahn. Icahn has launched his own campaign to try to force Apple to boost its share buyback program by 50 percent, claiming that Apple needs the give some of its massive cash reserve back to investors.

Einhorn has not indicated whether he would back Icahn up in a proxy fight with Apple Inc., but was evasive when asked about it on CNBC’s Fast Money Halftime Report.

Carl’s view is not particularly important to mine because I really don’t know what he’s thinking and I really have to form my own view.”

Oddly enough, Einhorn is better known for his short bets in the market, which have been his hedge fund’s biggest moneymakers. Greenlight Capital is up nearly 12 percent this year, as of reports made in mid-October, which is a stronger performance than that of its peers, but weaker than that of the general market.

Apple Stands Still

Apple has yet to publicly answer Icahn’s call for a larger buyback, which could in itself be an answer. The fact that Tim Cook has not signed off on a larger buyback could be an indication that the company is willing to go to war with the activist investor who is renowned for forcing companies to bend to his will. In Icahn’s defense, he is also known for being able to wring profitability out of almost every company he sinks his teeth into. With that said, his bite of Apple may just turn bitter in his mouth.

Disclosure: Author represents that he has no position in any stocks mentioned in this article at the time this article was submitted.